FinOps is okay, but CloudEconomics is superior!

Cloud FinOps is a term used to describe the financial operations and management of cloud computing resources. It involves optimizing costs, increasing efficiency, and improving return on investment.

Initially, cloud FinOps focused on cost optimization through a variety of strategies, including analyzing usage patterns, identifying waste, and negotiating discounts. This approach effectively reduced cloud costs, but it did not fully capture, and in fact, it missed, the potential of cloud economics to drive business growth.

To this day, cloud FinOps services, technologies and specialized partners all focus on the same trivial and basic aspects: underutilized and rightsizing resources, waste, and commitments in return for discounts.

As companies began to adopt cloud computing more widely, the role of FinOps expanded to encompass broader economic considerations.

The Evolution of Cloud FinOps to Cloud Economics

It reflects a shift in focus from simply managing cloud costs to leveraging cloud technology to drive business value.

Cloud Economics takes advantage of using cloud technology to:

• create new business opportunities,
• improve customer experiences,
• accelerate innovation.

This requires a more strategic approach to cloud management that goes beyond simple cost optimization.

Cloud economics involves leveraging hashtag#cloudtechnology to drive business value through improved agility, enhanced hashtag customer experiences, or new revenue opportunities. This approach requires a deep understanding of both the technical capabilities of cloud computing and the business needs of the organization by focusing on and diving deep into the realm of hashtag#UnitEconomics.

To fully realize the potential of Cloud Economics, companies, especially C-level management must embrace and lead a culture of innovation and change. Management needs to join and be part of the cloud journey by drawing relevant business-critical hashtag#insights from their hashtag#cloudinfrastructure. By doing so, organizations can use cloud technology to drive innovation and create new opportunities for growth.

In summary:

The evolution of cloud FinOps to Cloud Economics reflects a broader shift in the role of cloud computing within organizations. While cost optimization remains important, the focus has expanded to include broader economic considerations and a more strategic approach to hashtag cloud management. By embracing cloud economics, organizations can use cloud technology to drive calculated, measured and educated new growth opportunities.

Author: Ran Rothschild, Founder & CBO in Vortex

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